I Disadvantages of FDI
High financial 8!. managerial investments
Higher exposure to political risk
Vulnerability to restrictions on foreign investment
G reater ma nagerial com plexity
I Foreign Direct Investment (Three different methods)
o On the negative side, as with licensing, both parties to a franchising agreement must share
the revenues earned at the franchised location. International franchising may also be more
complicated than domestic franchising.
Specialized Entry Modes- a fir
Others take title to the goods. They make money by buying the goods from the exporter and
reselling them at a higher price to foreign customers.
Webb-Pomeren Association is a group of U.S. firms that operate within the same industry and that